The phrase "knowledge is power" holds true when applied effectively.
As a property management consultant, my role is to impart my knowledge to landlords and property owners, assisting them in running their business more efficiently and making cost-effective decisions. Neglecting crucial information such as account information, logins, and passwords may result in financial loss.
Outsourcing data management to third-party companies is a common industry practice among property owners, with the belief that it saves time and money. While partly true, it comes at a cost and property owners are losing out. Property management companies justify their fees on the premise that they have and know how to operate property management software. The cost of such software can vary, ranging from $200 to $2,000 per month.
A portfolio of just 14-20 properties is enough for a property management company to afford a software costing $2000 per month. This creates a cash flow for the management company while landlords are often unaware of the actual cost and have limited access to the data and operations involved.
If a property owner is seeking greater control over their data management and decides to terminate their contract with a management company, the third-party firm may not be able to provide a complete record of the property's history. This creates uncertainty regarding the transfer of invoices and bills to the owner's address, bringing home the point that cross-referencing all critical data is vital to ensure accuracy and completeness.
This is a significant problem because not only is the owner unaware of how the data system works but they are also left without access to it. They are reliant on the management company and may have to pay fees to retrieve information. The owner is then responsible for figuring out how to use the property management software, which can be overwhelming.
So what’s the solution?
To give owners autonomy over their properties and data. Their investment in a property management consultant and top tier software will help them accomplish this.
Property management consultants teach and train owners and their staff on data management systems and day-to-day operations. While hiring third-party management is not a bad idea, consulting services are beneficial in ensuring that the management company operates in the landlord's best interest.
Today, data companies have made it easier for private landlords to own their data without breaking the bank. As a consultant, I believe every landlord should own their own data and understand how data management systems work. Regardless of the property management company they work with, landlords should be knowledgeable about the data involving their vendors, tenants, and accounts.
Comments